Senior coalition members admit they have been forced on the defensive by claims that ministers did not know whether the modernisation was a revolution or an evolution of plans set in train by Blair's health secretaries.

"We believe changes and modernisation is long overdue and it should be implemented jointly with the spirit of industrial relations, whereas Royal Mail want to impose changes and so-called modernisation by diktat."

"Not just the degradation of this beautiful heritage precinct, which has the finest art deco buildings in the world, the so-called modernisation will increase congestion with hundreds of cars plying on the narrow roads," said Shyam Chainani, an environmentalist.